Innovation and Sustainable Business Report for CBA

This report provides an executive summary and detailed analysis of the Commonwealth Bank of Australia's (CBA) approach to sustainable business development. The report identifies a problem insight, focusing on the company's operational strategy, and proposes solutions such as strategic fit, value proposition, and customer segmentation to address the issues. It examines the company's value proposition, targeted customers, and competitive advantages, emphasizing the importance of strategic fit in achieving competitive advantages. The report also discusses uncertainties related to customer desirability, technical feasibility, and financial viability. Overall, the report offers a comprehensive overview of CBA's strategies for innovation and sustainability, including an analysis of its business model, competitive environment, and customer focus.

Innovation and Sustainable Business
Development
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Executive Summary
The assignment mainly portrays the sustainability development of the Commonwealth Bank of
Australia. The study mainly represents the company’s insight problem. The insight has focus on
the issue that the company is facing due to their lack of operation strategy. Apart from that, the
report has also attempted in producing the solution and concepts. The solutions that are provided
are how they can overcome their issue. Several factors were considered but among them, the
strategic fit is considered to be the best. As strategic fit helps in deciding the appropriate strategy,
decision and planning. This followed by the value proposition of the commonwealth bank and its
benefits. Moreover, targeted customers of the Commonwealth Bank are also duly mentioned.
The report also encompasses the strategic fit and the conclusion part.
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Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Main Body...................................................................................................................................................3
Problem insight........................................................................................................................................3
Portfolio of generated solution concepts..................................................................................................4
Solution selection analysis.......................................................................................................................4
Value proposition and benefits................................................................................................................5
Targeted customers..................................................................................................................................6
Competitive advantage............................................................................................................................6
Strategic fit..............................................................................................................................................7
Uncertainty related to customer desirability, technical feasibility and financial viability........................7
Conclusion...................................................................................................................................................8
Self Reflection.............................................................................................................................................8
References...................................................................................................................................................9
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Introduction
Commonwealth Bank Australia is identified as a multinational Australian Bank which is present
in Sydney. The company is seen to be established in different parts of the globe such as Asia, the
US, New Zealand, and the UK. The company is also showing the largest revenue gathering
processes in the global banking industry. The success, as well as the growth, is dependent on the
business model of the organization. The business ethics and the strategies are required to be
adopted for the improvement of the activities. The fulfillment of the customer needs as well as
the building of the effective image among the customers is establishing a competitive
environment. The business model, disruption and innovation is also identified which will be
helping the covering the business perspectives as well as helping in determining the effectiveness
of the business processes. Apart from this, this smart environment is structured which is enabling
the bank to stay connected with the customers (Mamula, 2012).
Main Body
Problem insight
The company is seen to be losing its vision and the strategy while dividing the operations as well
as executing different activities. The division of the operations is seen to be executed into the
primary as well as the support activities for the welfare of the operations. The effective value
chain established is also requiring the expertise with including familiarity. The Commonwealth
Bank Australia is also facing the difficulties of getting the information as the structure of the
business information system is not executed accordingly (Gotteland et al., 2020). As per the
detailed information was provided, it is seen that the effective value chain will be established
which will be leading to the development of effective business environment. Apart from this, it is
aiming at including all the activities which are seen to be essential for framing an outstanding
environment. But it is seen to be lacking in this context. The division of the operational processes
is reflecting the time-consuming environment as well as the difficulty is faced in gathering the
required information. The separation of the information should be made along with the
operational processes for the removal of the issues faced by the company (Ananthan et al., 2010).
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Portfolio of generated solution concepts
Commonwealth bank is said to be one of the multinational bank in Australia. Apart from that this
bank is situated at other parts of the globe. In order to gain success and enhance profit the
organizations is required to implement certain tools and techniques. The tools and techniques
should be for a longer period which plays an important role in terms of organizational life cycle.
The concepts are the strategic fit, competitive advantage, technical feasibility, financial
feasibility and uncertainties related to the customer feasibility (Giannakis & Harker, 2014).
Competitive advantage is said to be the situation that help an organization to generate equal
value of goods at a minimum price. This helps out the company to earn more sales when
compared to the competitors (Cravens & Piercy, 2013).
Strategic fit is the activity of the organization that contributes to the competitive advantage. The
advantage of strategic fit is the transfer of knowledge and skills, and reduction of cost (Stankovic
& Djukic, 2015).
Customer desirability mainly encompasses the three main parts one is the desirable solution to
the customers, feasible solution as per the present situation and profitable solution with
appropriate sustainable business model. But once these are missed it leads to uncertainties among
the customers along with riskier (Drejer, 2006).
Financial feasibility illustrates that how much amount of the capital is required for the
accomplishment of the project. The study considers what amount of cash is required and how
come it will be spent in the considerations of the financial feasibility. Moreover, the study is
associated with the financial aspects of the something (David & David, 2016).
Technical feasibility is related with the certain recognizable equipments and software’s that will
satisfy the need of the users. Further, it encompasses the entire technical needs of the systems.
All these are the solutions for the company which they can adhere too (Winer & Dhar, 2014).
Solution selection analysis
In order to achieve more customers and earning more profit the commonwealth bank has to put
their focus on these factors. All the factors are duly important but among them are the strategic
fit of the business is most important. Strategic fit help sin achieving the competitive advantage.
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But before that an appropriate planning and implementing strategy is important to carry pot.
With achieving the strategic fit the company ensures that it can balance the efficiency and
responsiveness which fulfils the need and requirements of the target customers. Moreover, this
will help the Commonwealth bank to target their customers accordingly (Du Plessis et al., 2012).
Though Commonwealth Bank focus on the operation process, customers, technology and
business banking which enhances the trust among the team and spirit. Being the customer-driven
company it tries to meet the needs and requirements of the customers. Strategic fit illustrates the
degree by which an organization is matching its resources with the opportunities present in the
external environment. So, it is also important the company must have proper and adequate
amount of resources and capabilities to support the strategy. Further, this helps out the company
in achieving competitive aims. Other than that, they also have to put immense emphasizes on the
other factors too (Esslinger, 2011).
Value proposition and benefits
The value proposition of the organization is developed through the maximized through bundling
services specifically for the clients through the complete collection of financial services.
Commonwealth Bank also carries out simple processes within its operations. Simpler process
means that the organization has zero wastage, more accuracy and speed. The organization is also
benefitted from the scale advantage and lack of bureaucracy. The wealth management services
of the organization are identified to be critical for the business services. This helps the
organization to form a superior place in the minds of the customers and also in the marketplace
(Jukić, 2019).
The multi-provider cloud model of Commonwealth bank is capable to shift its applications
among providers upon a pay-as-you-go basis. The company’s online integration is said to be a
key enabler through shifting workloads and applications more rapidly. On the other hand, the
model also facilitates the CommonWealth Bank to minimize the upfront cost to a great extent
along with mitigating the long term commitments (Wilson, 2017). The capability towards
moving the workloads and applications automatically as per the standard platform enables the
organization to capture the considerable value from the cloud computing through forming
contestability. Contestability is the capability of the organization to purchase the informational
technology constantly at a more reasonable cost. The specific model enables the organization to
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employ the diverse provider’s capacities more efficiently to reduce the expenses and enhance
flexibility. As per the scalability and flexibility, the multi-provider model of cloud IT sourcing is
much superior to the internal single provider and IT providers (Kotler & Keller, 2020).
Targeted customers
The customer segmentation facilitates the banking institutions to understand their customers
upon a granular level. The segmentation of customers reveals explicit intelligence which could
be obscured through the sheer data volume. The customer segmentation of the bank helps the
organization to comprehend the lifecycle of customers and assume the behaviour of them.
CommonWealth mainly targets the lower value customers. The first customer group which the
organization targets are those customers who have narrow income or possess limited financial
products. The long term low market segment value is identified as one of the most important
target market. Another group of customer are those who have diversified their financial product
in various financial institutions (Lynch, 2018).
The target customers will be the regular as well as the aged and business customers who are
involved in the business process. These customers are targeted as it is identified to be beneficial
for the customers for the enhancement of the business environment. The customers will be
enabling the company to remove the issues as they will be enabling the company to gain growth
in the environment. The enhancement of the business processes will be seen as it is seen in this
context. The improvement of the business processes will be executed by the business
organization (Narayana Reddy et al., 2010).
Competitive advantage
Michael Porter advocates for three important determinants that help the banking organization
Commonwealth Bank to implement an effective strategy for competitive advantages. These three
determinants are benefit, target market and competition. At first, the organization has to prepare
such a plan that can provide significant benefit to the customers. In his case, the organization has
to develop its products for the enhancement of the customers. In the second stage, the
organization has to target the potential markets for its business growth. By identifying the proper
target market, the organization will be able to compete with its competitors. There a several
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competitors exist of Commonwealth bank Such as National Australia Bank, Westpac Banking
Corporation, ANZ Banking Group Limited and few others (Peralta & Gismera, 2020). So, the
Commonwealth Bank needs to identify the strengths and weakness of the crucial competitors. By
effective evaluation of competitors' strengths and weaknesses, the organization will able to
achieve competitive advantages by implementing a strong marketing strategy. Commonwealth
Bank is operating its banking activities through several vital segments such as business accounts,
business credit cards, merchant services, online banking, business loans, asset finance and many
others. These products can provide superior service to the customers (Peris-Ortiz & Sahut, 2014).
Strategic fit
Commonwealth Bank has designed its product as per the requirements of the customers. In this
case, the organization has segmented its core banking activities into several parts. The patent
organization of Commonwealth bank is getting significant benefits from the banking activities of
it. Strategic fit concept advocates for an organization that has the capabilities to utilize the
opportunities of the external environment. The organization has to evaluate the performance of
the existing industry. Moreover, the performances of the other rivalries also have to analyze by
the organizational top management team before implementing strategic plans. Commonwealth
Bank is monitoring its business activities for futuristic benefits for its own and parent company
(Raghuvanshi & Agrawal, 2020).
Uncertainty related to customer desirability, technical feasibility and financial viability
Commonwealth Bank Australia is facing the uncertainties related to the customer desirability,
technical feasibility as well as the financial viability. The customer desirability is reflecting the
changes in the customers' taste and the preferences related to the products and the services
provided by the company. The company is seen to providing the appropriate environment to the
customers for meeting their needs as well as the preferences. The technical feasibility
uncertainties are faced by the company while executing the operations, the company should be
enabled of strengthening the business environment with strengthening the business processes.
The financial viability is reflecting the cost pressures established on the organization for the
improvement of the operational processes. Thus, these are the uncertainties raised for the
company Commonwealth bank Australia (Schaltegger et al., 2012).
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Conclusion
The overall discussion is reflecting the explanation of the vital concepts of the problems which
are required to be solved. The portfolio of the generated solution concepts as well as the solution
selection analysis is provided in this report. The value proposition and the benefits, as well as the
target customers and the competitive advantages, should be gathered in this context. The
strategic fit, as well as the uncertainties of the customer desirability, technical feasibility and the
financial viability, is considered. Thus, it is leading to the establishment of the feasible report
with providing appropriate tools and techniques for executing the report processes. Apart from
this, it is also focusing on the development of the activities as is seen in this context (Sheehan,
2018).
Self Reflection
From the case study of Commonwealth Bank Australia, it has been clearly understood that to
keep the development and growth process, an organization is required to provide ample stress on
innovation. The innovation and implementation of effective strategic management are most
important for the contemporary business organizations to maintain their sustainability in this
changing business environment which is becoming more and more competitive. The companies
have to change their strategies in accordance with the changes in the current business
environment.
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